The largest manager of budget-priced hotels in the world is the French company Accor. In 2014 it

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The largest manager of budget-priced hotels in the world is the French company Accor. In 2014 it owned over 3,717 hotels in 90 countries under the brands Sofitel, Pullman, Novotel, Mercure, Suitehotel, All Seasons, Ibis, Etap Hotel, Formule 1 and Motel 6, and its related activities, Thalassa Sea & Spa and Lenôtre, with a portfolio ranging from luxury to budget class. With a workforce of 250,000 employees, Accor generated revenues of just over $2 billion in 2017. A total of 25 per cent of its hotel rooms were located in France and Switzerland, 27 per cent in the rest of Europe, 27 per cent in Asia-Pacific and 21 per cent in the rest of world. Accor is a home-region firm with focus on Europe, where 54 per cent of its hotel rooms are located. The Accor Group has developed international capabilities, however, as a major service provider to the tourist, business travel and food business sectors. It is developing an international brand name for the Group’s activities in these areas and uses B2B and B2C internet services extensively for the purposes of promotion and managing partnerships. There are 860,000 restaurant managers, supermarket suppliers and other affiliated workers using its B2B services, along with another 300,000 customers/small-business people using B2C. The company began operations in 1967 and rapidly expanded its Novotel hotels across France. The acquisition of another hotel chain in 1974, Courtepaille, established Accor as a major player in the French market. During the next two years the company moved to develop a market presence in the two- and three-star hotel market segment, opening an Ibis two-star hotel in Bordeaux and acquiring the three-star Mercure hotel chain. The first significant expansion outside France was the 1973 opening of Novotel in Warsaw, Poland. In 1976, Accor opened its first hotel in Brazil and over the next year it began to rapidly develop in Latin America. In 1979, Accor entered the US market with hotels in Minneapolis and New York; in 1984 a large Novotel was erected in Broadway. To enter the affordable US hotel market, the Motel 6 chain was purchased in

1990. By acquiring Sofitel in 1980 the company entered the African market and strengthened its position in Europe. In 1986, Accor began development in Asia, including China and Thailand. In preparation for the 2008 Olympic Games, Accor entered a joint venture with the Beijing Tourism Group to manage 50 hotels. Accor is also in the travel business. In France it owns Carlson Wagonlit Travel and Frantour. Acquiring international travel companies has allowed Accor to complement its international hotel expansion plans. The acquisition of Africatours in 1984 allowed Accor to control the stream of tourism in the region. In 1987, Africatours acquired Asia Tours and America Tours. In 2000, Accor purchased a 38.5 per cent stake in Go Voyages, an e-travel planner that targets the European traveller. Growing expertise in the hospitality business has also allowed the company to diversify into other areas, including restaurants and casinos. Table 16.6 shows the global spread of Accor hotels by region and brand. A report by Datamonitor outlined the Accor Group’s main strengths and weakness in 2008. Strengths include: a wide range of product and service offerings, an improving financial position and a strong focus on customer service. Weaknesses include: underperforming assets, an overdependence on hotels (65 per cent of revenues) and a geographic concentration in Europe (75 per cent of revenues). The recovering European hotel industry, current expansion in China and India, and the recovering business travel market are all opportunities for the Group. These are offset by the growing range of competitors, particularly in the low-cost travel and leisure segments.

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